Archrock Inc. sold “certain lower horsepower operating assets” to privately backed Park Energy Services LLC, in a deal that Park said will enhance the company’s strategic position in South Texas and Pennsylvania.
“We are pleased to announce this transaction as we execute on our strategy to become the largest provider of lower horsepower compression to the industry,” commented Tim Knox, president and CEO of Park, in a company release on July 27.
Founded in 2014, Park is a portfolio company of Rock Hill Capital headquartered in Oklahoma City. The company specializes in compression technology that helps oil and natural gas producers increase well-production volumes and reduce emissions through the capture of vapors that would otherwise be vented or flared and currently operates a fleet of compressor units focused on wellhead compression, gas lift and vapor recovery in major producing basins of Texas, Oklahoma, Pennsylvania, Ohio, New Mexico and Colorado.
The transaction is the most recent acquisition by Park as it aims to position itself as a leading provider of wellhead and vapor recovery compression. One of Park’s last acquisitions was its purchase of substantially all the assets of Chesapeake Energy Corp.’s Midcon Compression division in October 2018.
“We will continue to pursue purchase and partnership opportunities with multiple providers,” Knox continued, “as we look to consolidate a fragmented market segment and achieve significant scale from which we can provide a complete array of portable and quick-to-deploy compressor packages for natural gas production, oil production through gas-lift and vapor recovery, both engine and electric motor drive, all backed by outstanding service.”
Terms of the Archrock transaction weren’t disclosed but Park noted in its release that debt financing for the transaction was secured under an expanded senior credit facility provided by Regions Bank, UMB Bank NA and Century Bank. Legal representation for the transaction was provided by Winston & Strawn LLP.
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